Prospective housebuyers could face losing their dream home as Covid-19 issues delay work on a massive new estate.

Builder Dandara is blaming a shortage of materials and labour resulting from the pandemic for the delays to the 282-home Reayrt Mie development in Ballasalla.

Some homes on the estate are already occupied - and a number have been purchased as buy-to-lets and offered for rent. But others are yet to be completed, while construction of later stages of the development has not begun.

Now Dandara has written to would-be buyers to inform them that it is returning the £1,000 reservation fee put down for homes due to have been finished after June 30.

Those who had reserved a plot to be completed before that date have been given as little as two weeks to pay the 10% deposit or face losing the property.

Constituency MHK Graham Cregeen said he had been in discussion with Dandara and has another meeting with them tomorrow (Friday) regarding concerns raised with him by potential purchasers.

He said: ’Some housing has got pushed back as Dandara has issues with the supply chain and a shortage of skilled trades.

’My concern is with those people who had put down a reservation fee, started the chain process and could now face losing their home. I think that’s dreadful.

’I hope Dandara will show some compassion by given them extra time to sort out the deposit.’

Another headache for homebuyers is that banks are only offering three month windows for mortgage approvals.

Dandara’s plan for 282 houses and a bypass between Douglas Road and the rear of Railway Terrace (19/00137/B) was given planning consent in August 2019.

The approval was for the first two phases of the development of 135 and 147 homes respectively. A future third phase will see a new roundabout created together with facilities such as shops.

Planning consent was granted on the condition that work on the new bypass will begin no later than the completion of the 75th house being completed - and no houses in phase two of the development are built until the new road is finished.

It is understood that 20 to 30 prospective buyers are affected by Dandara’s decision.

Potential purchasers fear that when construction begins again on the delayed homes, they will be advertised at a higher price.

Signs displaying ’All trades wanted’ went up on the roadside by Reayrt Mie after the Covid pandemic began last year.

Dandara said no one was available for comment.

Mr Cregeen said: ’Dandara have confirmed to me the bypass is going ahead and they are looking to be down to the Balthane junction by the end of this year.

’The delays to the scheme can’t be indefinite as they are going ahead with the bypass.’

He said the DoI element of the bypass scheme, which involves a new roundabout at Balthane Corner is in the capital programme for 2022-23.